Apple and Google Face Growing Revolt Over App Store ‘Tax’

A backlash against the app stores of Apple and Google is gaining steam, with a growing number of companies saying the tech giants are collecting too high a tax for connecting consumers to developers’ wares. Netflix and video game makers Epic Games and Valve are among companies that have recently tried to bypass the app stores or complained about the cost of the tolls Apple and Google charge. Grumbling about app store economics isn’t new. But the number of complaints, combined with new ways of reaching users, regulatory scrutiny and competitive pressure are threatening to undermine what have become digital goldmines for Apple and Google. 

Apple and Google launched their app stores in 2008, and they soon grew into powerful marketplaces that matched the creations of millions of independent developers with billions of smartphone users. In exchange, the companies take up to 30 percent of the money consumers pay developers. According to one estimate, if app store commissions fell to a blended rate of 5 percent to 15 percent, that would knock up to 21 percent off Apple’s earnings, before interest and tax. Google could lose up to 20 percent by the same measure.